The Parliament Joint Sub Committee of Public Accounts Committee and Committee on Economic Affairs has passed a Bill to increase TGST to 17 percent starting July 2025, instead of June 2025.

The government initially proposed a Bill to increase TGST from June 2025 onwards.

However, North Thinadhoo MP Saudullah Hilmy moved to change the date to April or July after expressing concern that taxes would have to be filed in two different amounts in the same quarter if the Bill was passed as is.

Saudullah’s motion was supported by, Dhigurah MP Ahmed Nazim.

The committee also approved the inclusion of employee canteens as tax exempt establishments in resorts. It was moved by Baarah MP Ibrahim Shujau.

The TGST increase was moved by West Maafannu MP Mohammed Musthafa on behalf of the government. According to the Bill, the TGST will be increased from 16 percent to 17 percent.

The amendment would provide the state with an additional USD 200 million in tax revenue.